Sears takes out $1 billion in term loans

Sears Holdings Corporation announced that its wholly owned subsidiaries, Sears Roebuck Acceptance Corp. and Kmart Corporation, have taken out a $1.0 billion loan.

The incremental term loan was enacted under a new senior secured term loan facility under the company's existing credit agreement, titled Second Amended and Restated Credit Agreement dated April 8, 2011. The agreement continues to provide for a $3.275 billion asset-based revolving credit facility.

The net proceeds of the loan were used to reduce borrowings under the revolving facility, resulting in borrowings outstanding under the revolving facility of approximately $1.0 billion.

The loan matures in June 2018, while the revolving facility remains scheduled to expire on April 8, 2016.